Broadband Contract Lengths: 12, 18, or 24 Months?
Weighing the pros and cons of long-term commitments.
The Commitment Spectrum
Broadband contracts are getting longer. A decade ago, a 12-month contract was standard. Today, 18-month and 24-month contracts are the norm for the big providers. Why is this happening, and does it benefit you?
The 24-Month Trap
Providers love 24-month contracts. It guarantees them revenue and reduces “churn” (customers leaving). To tempt you, they often offer the lowest monthly price on the longest term. You might see:
12 Months: £40/month + £29 setup
24 Months: £35/month + Free setup
The 24-month deal looks cheaper. But there is a sting in the tail: Inflation-Linked Price Rises.
The CPI + 3.9% Clause
Many large ISPs (BT, EE, Plusnet, Vodafone, TalkTalk) include a clause stating they will raise prices every April by the rate of inflation (CPI) plus an extra 3.9%. In recent years of high inflation, this has meant mid-contract price hikes of over 14%.
If you sign a 24-month contract, you are guaranteeing you will be hit by two of these price rises before you can leave. A £35 bill can easily become £42 by the end of the term. You cannot leave penalty-free because you agreed to this clause in the small print.
The AltNet Alternative
This is where the CityFibre marketplace shines. Many independent ISPs (AltNets) reject this practice. Providers like Zen Internet, Cuckoo, and many smaller local ISPs offer a “Fixed Price Promise.” The price you sign up for is the price you pay for the entire contract.
Furthermore, some offer shorter terms:
- 12-Month Contracts: Good balance of price and flexibility.
- Rolling Monthly (30-day): The ultimate freedom. You pay a bit more and usually an upfront setup fee, but you can cancel any time. This is perfect for renters, students, or if you plan to move house soon.
Doing the Math
When comparing deals, calculate the Total Cost of Ownership over 24 months.
Deal A: £30/month (fixed) = £720 total.
Deal B: £28/month (but rises 10% each April) = approx £750 total.
Sometimes the “cheaper” headline price ends up being more expensive.